IMF Mission Backs $613 Million Loan For Sarajevo To Bolster Reforms

The International Monetary Fund’s mission in Bosnia-Herzegovina says it has approved a new $613 million loan to the country aimed at helping it carry out economic reforms that are sought by the European Union.

In a statement on May 24, the IMF said its mission in Sarajevo reached an agreement with Bosnian authorities on an economic program that would be supported by a 36-month loan.

The reforms are intended to improve the business climate in the country, resume the privatization and restructuring of state firms, and slow down a rise in public debt.

The loan has yet to be approved by the IMF Executive Board.

Final approval is not expected there until July.

The IMF said the economy in Bosnia-Herzegovina is “showing firmer signs of recovery."

It said economic growth is expected to reach 3 percent for 2016.

But it said "vulnerabilities remain."

Based on reporting by AFP and Reuters